The Democratic Party and Republican Party have shown they care little about our financial future and that  of our children and grandchildren. In the case of the Democrats, it is simply based on their belief in bigger government and higher taxes, a fundamental philosophy with which the American Center Party disagrees. However, in recent years, even the Republicans have ceased to be fiscally responsible. The Republicans, under Presidents Reagan and George H.W. Bush, increased our national debt from $1 trillion to $5 trillion between 1980 and 1992. More recently, the Republicans, totally lost fiscal responsibility, and doubled our national debt under President George W. Bush from $5 trillion to $10 trillion dollars. Sadly, they did so with Republicans controlling Congress for six of the eight years President Bush was in office. Consequently, it’s obvious they either don’t have the answer or don’t care and are more interested in getting re-elected and playing politics than protecting our future. Who would have ever thought that today, with the recently passed federal budget, we would be acknowledging that the Republican Party has contributed more to the National Debt than the Democratic Party. Our government should immediately seek to balance the federal budget and maintain a balanced budget in the future.

SUGGESTED POLICIES AND PROGRAMS

1. To begin with, the American Center Party would recommend a ten per cent (10%) cut in the budget across the board, with no department or program being protected from such cut. To cut across the board all programs is essential because it will leave no program protected and thus, no representative or senator can claim his ox is being gored but someone else’s isn’t. In addition, it will send a clear message that government funds are not a bottomless pit and fiscal responsibility in government is a requirement and not an afterthought. For those departments in need of additional funding, a supplemental appropriation bill is possible. 
2. It is estimated that illegal immigrants cost government approximately $300 billion annually. That must change. With the new comprehensive immigration policy contained in the American Center Party’s policies, that would reduce our annual deficit by that same $300 billion. In addition, millions of new employees would be paying income taxes and contributing to Social Security.
3. An additional $300 billion or more can be gained by simply beefing up the collection efforts of the IRS, since it is estimated that approximately $300 billion per year is lost due to the failure to collect these taxes. In fact, one study said that in 2006 the IRS failed to collect approximately $450 billion in taxes. This doesn’t even include penalty and interest. If those taxes are collected, that means the US could gain approximately $3 trillion in back taxes over ten years, not counting penalty and interest, which could be applied to the national debt, reducing it to $17 trillion based on 2016 figures. In the future, if we continue to collect those taxes that is another $300 billion minimum that would reduce the annual deficit. This is a significant reduction in our annual deficit, just by following one law (the IRS) and implementing another (comprehensive immigration), reducing our perennial annual deficit, which has been from $500 billion to $1.5 trillion. At the same time, we would be reducing our daily interest on the national debt, which is approximately $1.2 to 1.5 billion. That daily interests equates to approximately between $438 billion and $547 billion annually. Imagine what that sum of money could do for education, as one example.
4. Another cost saving procedure would be to freeze all federal hiring, with the exception of the military and possibly the FBI, each of which is vital to our national security. At the same time we would cut federal employees by 10% in each government department, again except the military and possibly the FBI.  Much of this will be taken care of with simple attrition through retirement or people leaving for the private sector. In taking this position the American Center  Party would point out both the Democrats and Republicans have been responsible for the growth of our government. During the Presidency of George W. Bush, from 2001 until 2008 figures suggest approximately 23,000 new federal employers were added to the federal payroll. As might be expected, President Obama has left President Bush standing in his wake by adding approximately 93,000 to the federal payroll in his first term alone. At present it is estimated the total cost of wages and benefits for federal employees annually is approximately $260 billion.
5. The American Center Party realizes federal earmarks are no longer a major part of the federal budget, but they nonetheless point to a major problem with the attitude of Congress. They seem to believe it’s only $10-15 billion so it’s no big thing. However, it’s that type of attitude that leads to huge annual deficits and the current catastrophic national debt. It needs to stop and there is no better time than now. Furthermore, there are those who claim earmarks are actually closer to $150 billion or more annually because some limit earmarks to budgetary items, when in fact some earmarks are attached to substantive legislation, which raise the cost significantly. An example of the latter is the bomber the Department of Defense and United States Air Force didn’t want, but was approved anyway years ago because it was supported by Republican Senator Shelby from Alabama where it was to be built.
6. The American Center Party also believes unfunded and partially funded mandates should no longer be permitted, if they still exist. Further, all unfunded or partially funded mandates now in existence, should be repealed, for those that still exist, if any. This is not a sound government practice or sound economics. If the federal government believes a program is worthy of passage, the federal government should fund it. If the Congress doesn’t deem a program worthy of federal funding it should not be passed. It is extremely unfair for the federal government to saddle the states with programs over which they have no say and over which they have no control and require the States to pay all or part of the costs. Obamacare is just one recent example. The states have their own constituencies, their own budgets, their own responsibility and should be allowed to address them without worrying about what burden the federal government will place on them next.
7. Government corporate subsidies should cease. The tax restructuring by the American Center Party with its lower tax rates, should limit the actual need for such subsidies in the future. Two examples for repeal are the ethanol subsidy and the sugar subsidy. If ethanol can survive in the market place, that’s the way it should be. In the case of sugar, maybe repealing that subsidy and lowering the tariffs might make it possible to expand our fuel production to include bio-fuel similar to that which has made Brazil virtually energy self-sufficient.  Cessation of corporate welfare would save approximately $100 billion annually in our federal budget. If agricultural subsidies are included that could save approximately $30 billion more.

Finally, the American Center Party believes the Democrats and Republicans and their leaders should stop playing games with the public and tell it like it is. All the posturing by both parties ignores one basic fact. Nothing they are proposing solves our economic problems. It is estimated the so-called Buffett tax would only raise $47 billion over the next ten years. That hardly scratches the surface when you realize our annual deficit has been as high as  $1.5 trillion and our national debt is over $20 trillion. Furthermore, recent data shows that 8274 Americans make in excess of $10 million per year. Even if we took all their earnings to attack our annual deficits and our national debt, it would only raise $254 billion annually. Once again still leaving us with a significant annual deficit. Besides, taking this income is fundamentally un-American and is not practical since it is the wealthy who invest and help our economy grow. The only recourse is to abolish our internal revenue code and develop a tax structure that is fair and equitable to all and raises the revenue necessary to pay our bills without adding to our national debt. To do otherwise is a grave injustice to all future generations, including that of our children and grandchildren who will ultimately pay for our fiscal irresponsibility.

In re-evaluating our tax structure, the American Center Party will undertake a serious study of he viability of a consumption tax and/or a value added tax as our source of revenue for government. What a wonderful thought that our citizens could retain that which they earn and pay a tax based on what and where they choose to spend the income for which they have worked so hard. They will then have total control over their income and the taxes they pay.